Indiana 2023 Regular Session

Indiana Senate Bill SB0454 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 454
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-12-9.
7	7	Synopsis: Eligibility for senior property tax deduction. Increases the
8	8	adjusted gross income threshold for an individual at least 65 years of
9	9	age to obtain a deduction from the assessed value of the individual's
10	10	real property from $30,000 to $44,000. Increases the threshold for an
11	11	individual at least 65 years of age filing a joint return from $40,000 to
12	12	$88,000. Increases the combined adjusted gross income threshold for
13	13	an individual at least 65 years of age and all other individuals with
14	14	whom the individual shares ownership as joint tenants or tenants in
15	15	common from $40,000 to $88,000.
16	16	Effective: January 1, 2023 (retroactive).
17	17	Breaux
18	18	January 19, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
19	19	2023 IN 454—LS 6680/DI 129 Introduced
20	20	First Regular Session of the 123rd General Assembly (2023)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2022 Regular Session of the General Assembly.
30	30	SENATE BILL No. 454
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	taxation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.174-2022,
35	35	2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 9. (a) An individual may
37	37	4 obtain a deduction from the assessed value of the individual's real
38	38	5 property, or mobile home or manufactured home which is not assessed
39	39	6 as real property, if:
40	40	7 (1) the individual is at least sixty-five (65) years of age on or
41	41	8 before December 31 of the calendar year preceding the year in
42	42	9 which the deduction is claimed;
43	43	10 (2) for assessment dates before January 1, 2020, the combined
44	44	11 adjusted gross income (as defined in Section 62 of the Internal
45	45	12 Revenue Code) of:
46	46	13 (A) the individual and the individual's spouse; or
47	47	14 (B) the individual and all other individuals with whom:
48	48	15 (i) the individual shares ownership; or
49	49	16 (ii) the individual is purchasing the property under a
50	50	17 contract;
51	51	2023 IN 454—LS 6680/DI 129 2
52	52	1 as joint tenants or tenants in common;
53	53	2 for the calendar year preceding the year in which the deduction is
54	54	3 claimed did not exceed twenty-five thousand dollars ($25,000);
55	55	4 (3) for assessment dates after December 31, 2019:
56	56	5 (A) the individual had, in the case of an individual who filed
57	57	6 a single return, adjusted gross income (as defined in Section
58	58	7 62 of the Internal Revenue Code) not exceeding thirty
59	59	8 forty-four thousand dollars ($30,000); ($44,000);
60	60	9 (B) the individual had, in the case of an individual who filed
61	61	10 a joint income tax return with the individual's spouse,
62	62	11 combined adjusted gross income (as defined in Section 62 of
63	63	12 the Internal Revenue Code) not exceeding forty eighty-eight
64	64	13 thousand dollars ($40,000); ($88,000); or
65	65	14 (C) the combined adjusted gross income (as defined in Section
66	66	15 62 of the Internal Revenue Code) of the individual and all
67	67	16 other individuals with whom:
68	68	17 (i) the individual shares ownership; or
69	69	18 (ii) the individual is purchasing the property under a
70	70	19 contract;
71	71	20 as joint tenants or tenants in common did not exceed forty
72	72	21 eighty-eight thousand dollars ($40,000); ($88,000);
73	73	22 for the calendar year preceding by two (2) years the calendar year
74	74	23 in which the property taxes are first due and payable;
75	75	24 (4) the individual has owned the real property, mobile home, or
76	76	25 manufactured home for at least one (1) year before claiming the
77	77	26 deduction; or the individual has been buying the real property,
78	78	27 mobile home, or manufactured home under a contract that
79	79	28 provides that the individual is to pay the property taxes on the real
80	80	29 property, mobile home, or manufactured home for at least one (1)
81	81	30 year before claiming the deduction, and the contract or a
82	82	31 memorandum of the contract is recorded in the county recorder's
83	83	32 office;
84	84	33 (5) for assessment dates:
85	85	34 (A) before January 1, 2020, the individual and any individuals
86	86	35 covered by subdivision (2)(B) reside on the real property,
87	87	36 mobile home, or manufactured home; or
88	88	37 (B) after December 31, 2019, the individual and any
89	89	38 individuals covered by subdivision (3)(C) reside on the real
90	90	39 property, mobile home, or manufactured home;
91	91	40 (6) except as provided in subsection (i), the assessed value of the
92	92	41 real property, mobile home, or manufactured home does not
93	93	42 exceed two hundred forty thousand dollars ($240,000).
94	94	2023 IN 454—LS 6680/DI 129 3
95	95	1 (7) the individual receives no other property tax deduction for the
96	96	2 year in which the deduction is claimed, except the deductions
97	97	3 provided by sections 37, (for assessment dates after February 28,
98	98	4 2008) 37.5, and 38 of this chapter; and
99	99	5 (8) the person:
100	100	6 (A) owns the real property, mobile home, or manufactured
101	101	7 home; or
102	102	8 (B) is buying the real property, mobile home, or manufactured
103	103	9 home under contract;
104	104	10 on the date the statement required by section 10.1 of this chapter
105	105	11 is filed.
106	106	12 (b) Except as provided in subsection (h), in the case of real property,
107	107	13 an individual's deduction under this section equals the lesser of:
108	108	14 (1) one-half (1/2) of the assessed value of the real property; or
109	109	15 (2) fourteen thousand dollars ($14,000).
110	110	16 (c) Except as provided in subsection (h) and section 40.5 of this
111	111	17 chapter, in the case of a mobile home that is not assessed as real
112	112	18 property or a manufactured home which is not assessed as real
113	113	19 property, an individual's deduction under this section equals the lesser
114	114	20 of:
115	115	21 (1) one-half (1/2) of the assessed value of the mobile home or
116	116	22 manufactured home; or
117	117	23 (2) fourteen thousand dollars ($14,000).
118	118	24 (d) An individual may not be denied the deduction provided under
119	119	25 this section because the individual is absent from the real property,
120	120	26 mobile home, or manufactured home while in a nursing home or
121	121	27 hospital.
122	122	28 (e) For purposes of this section, if real property, a mobile home, or
123	123	29 a manufactured home is owned by:
124	124	30 (1) tenants by the entirety;
125	125	31 (2) joint tenants; or
126	126	32 (3) tenants in common;
127	127	33 only one (1) deduction may be allowed. However, the age requirement
128	128	34 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
129	129	35 of age.
130	130	36 (f) A surviving spouse is entitled to the deduction provided by this
131	131	37 section if:
132	132	38 (1) the surviving spouse is at least sixty (60) years of age on or
133	133	39 before December 31 of the calendar year preceding the year in
134	134	40 which the deduction is claimed;
135	135	41 (2) the surviving spouse's deceased husband or wife was at least
136	136	42 sixty-five (65) years of age at the time of a death;
137	137	2023 IN 454—LS 6680/DI 129 4
138	138	1 (3) the surviving spouse has not remarried; and
139	139	2 (4) the surviving spouse satisfies the requirements prescribed in
140	140	3 subsection (a)(2) through (a)(8).
141	141	4 (g) An individual who has sold real property to another person
142	142	5 under a contract that provides that the contract buyer is to pay the
143	143	6 property taxes on the real property may not claim the deduction
144	144	7 provided under this section against that real property.
145	145	8 (h) In the case of tenants covered by subsection (a)(2)(B) or
146	146	9 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
147	147	10 age, the deduction allowed under this section shall be reduced by an
148	148	11 amount equal to the deduction multiplied by a fraction. The numerator
149	149	12 of the fraction is the number of tenants who are not at least sixty-five
150	150	13 (65) years of age, and the denominator is the total number of tenants.
151	151	14 (i) For purposes of determining the assessed value of the real
152	152	15 property, mobile home, or manufactured home under subsection (a)(6)
153	153	16 for an individual who has received a deduction under this section in a
154	154	17 previous year, increases in assessed value that occur after the later of:
155	155	18 (1) December 31, 2019; or
156	156	19 (2) the first year that the individual has received the deduction;
157	157	20 are not considered unless the increase in assessed value is attributable
158	158	21 to substantial renovation or new improvements. Where there is an
159	159	22 increase in assessed value for purposes of the deduction under this
160	160	23 section, the assessor shall provide a report to the county auditor
161	161	24 describing the substantial renovation or new improvements, if any, that
162	162	25 were made to the property prior to the increase in assessed value.
163	163	26 SECTION 2. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
164	164	27 (a) IC 6-1.1-12-9, as amended by this act, applies to assessment
165	165	28 dates occurring after December 31, 2022.
166	166	29 (b) This SECTION expires January 1, 2025.
167	167	30 SECTION 3. An emergency is declared for this act.
168	168	2023 IN 454—LS 6680/DI 129